Home Sales: The market experienced a slow start this year. The factors contributing to this slowdown include high home prices, mortgage rates, and low inventory. However, experts believe the market is poised for a comeback, with home sales expected to pick up by early next year. This presents an opportunity for buyers to shop for a home without the intense competition seen during the pandemic.
Property Values: While home prices have moderated in certain segments, they remain stable overall. The median house price in Denver fell by 3.25% at the end of May 2023 compared to a year ago. Although the median home prices experienced a slight decline compared to last year, there is only 1.25 months of inventory on the market resulting in multiple offers and above list price offers in some market areas. Homeowners can still benefit from the equity gains they have made.
Listing Inventory: The supply of homes for sale remains low, as many sellers are hesitant to give up their lower mortgage rates. However, in the summer months, inventor levels rise giving buyers more opportunities to find the perfect home. As a buyer, it could be beneficial to buy in the summer when sales are down, and inventory is slightly higher. Buyers will face less competition in the summer and fall than in the spring.
Mortgage Rates: Mortgage rates have been relatively high, impacting homebuyer affordability and demand. However, there are signs that rates could trend lower later this year or early next year. Economists predict a potential decrease in rates, which would be great news for buyers. With the current low level of inventory, our assumption is, if rates drop, there will be intense competition for the limited number of homes for sale.
As local market experts, we understand the intricacies of our specific area and can guide you through the buying or selling process. Whether you are looking to purchase a home or sell your current one, we are here to help you achieve your real estate goals. Contact us for a free consultation and let us develop an action plan tailored to your needs.
Please note that the information provided is for informational purposes only and should not be considered financial, legal, or tax advice. It is always best to consult with professionals regarding your specific situation.